Erick Thohir Encourages Pertamina to Become a Global Class SOE

Jakarta, July 12, 2024 – The Minister of State-Owned Enterprises (SOEs), Erick Thohir, stated that global competition will become increasingly challenging. According to him, the energy transition will bring extraordinary dynamics. Thus, as a corporation, Pertamina must be ready to adapt, starting with improving its human resources.

"As an Energy SOE, Pertamina is expected to serve as a national economic stronghold to strengthen corporate competition, and this must begin with self-improvement," Minister Erick explained at the Pertamina Akhlak Festival event in Jakarta on July 9, 2024.

Moreover, Erick also mentioned that Pertamina has formed a holding and sub-holding to anticipate the era of competition. "Whether we like it or not, the supply chain is an essential part of Pertamina's journey forward; this is a transformation and innovation we must continuously undertake," Erick explained.

Minister Erick also appreciated Pertamina's current efforts to promote Nature-Based Solutions (NBS) implementation. A concrete example is bioethanol, which we have used as a more environmentally friendly fuel.

Minister Erick hopes that Pertamina will also play a role in building a green industry. "Recently, I visited the National Capital with the Pertamina team. With the increasing demand for the National Capital, alternative electricity sources besides hydro or solar are gas. However, we must build a green industry, a sustainable green industrial area, so that when global trade competition requires green products, Pertamina's transition must be encouraged," Erick emphasized.

Minister Erick also hopes Pertamina will be involved in carbon trading. "Carbon trading must be part of the development for a company as large as Pertamina," he stressed.

President Director of Pertamina, Nicke Widyawati, said that to face global competition, Pertamina is preparing three steps to address the energy trilemma challenges, the first of which is by increasing upstream sector production domestically and internationally. Second, optimizing gasoline through revamping, increasing refinery capacity, and enhancing additional production by mixing bioethanol into bio gasoline to reduce diesel imports. Third, by reducing LPG imports through increased production capacity and developing household gas networks.

Nicke added that Pertamina has also prepared an energy transition roadmap and is implementing sustainable business practices through the Sustainability Policy, Strategy & Initiatives across the Pertamina Group. The goal is to make Pertamina an environmentally friendly, socially responsible, and well-governed company.

Furthermore, Pertamina continues to innovate to support national energy resilience and prepare to face global energy challenges through strategic initiative steps.

Pertamina also contributes to sustainable development by preparing the company for the Nusantara Sustainability utilization in the Nusantara Capital City (IKN) in synergy with stakeholders as part of Pertamina's efforts to face global competition.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.